The Saipem jackup drilling rig Perro Negro 7, which resumed operating for Saudi Aramco in 2026 and will remain under contract until 2034 MarineTraffic.com/Deepak Teja
Drilling & Production

Saipem completes $285m sale of Saudi drilling business to ADES

The five-rig transaction transfers Saipem’s Saudi shallow-water operations to ADES, while a bareboat charter keeps the jack-up Perro Negro 10 working for Saipem in Mexico.

Alan Bosworth

Saipem completed the sale of its Saudi Arabian shallow-water drilling business to ADES Saudi on September 15 after securing regulatory approvals.

The $285 million transaction transfers Saipem’s entire interest in Saudi Arabian Saipem (SAS) to ADES Saudi, an indirect subsidiary of ADES Holding Company. The sale was completed on a debt-free, cash-free basis, with the cash consideration subject to customary adjustments.

On June 24, Saipem, through its subsidiary Saipem International, agreed in binding terms to the sale and purchase. At that time, the company expected to complete the transaction during the third quarter of 2026, subject to approvals and other closing conditions.

SAS generated revenue of SAR636 million, equivalent to about $170 million, in 2025. Saipem said when announcing the agreement that the proceeds would be used in accordance with its industrial plan.

Five jack-ups transfer to ADES

SAS's fleet consisted of five jack-up rigs for offshore drilling in shallow waters: three owned units and two leased vessels.

The owned fleet included Perro Negro 7 and Perro Negro 8. The third owned rig was Perro Negro 10, which is operating in Mexico under an existing contract. The leased units were Perro Negro 11 and Perro Negro 13.

Four of the jack-ups were operating in Saudi Arabia before the acquisition, while Perro Negro 10 was deployed in Mexico.

Saipem and ADES signed a bareboat charter for Perro Negro 10 as part of the closing arrangements. The charter allows Saipem to continue using the rig for its Mexican operations despite the transfer of its ownership to ADES.

Saipem said the arrangement would maintain operational continuity and enable it to meet existing customer commitments in Mexico.

Saipem focuses drilling fleet on complex segments

The divestment reduces Saipem’s exposure to shallow-water drilling as the company concentrates its offshore fleet on deepwater and harsh-environment work. Saipem has described those markets as higher-complexity segments offering greater added value.

The company’s offshore drilling business reported revenue of €829 million in 2025, down from €918 million a year earlier.

Saipem attributed the lower revenue and earnings to a smaller fleet following Aramco contract suspensions and to mobilization costs. Higher day rates and improved utilisation for selected rigs partly offset those effects.